Jeff Currie Predicts $5 Gasoline Surge Ahead of Midterms

Currie, now leading Real Macro, argues that the flexibility of refineries to switch between gasoline and diesel production is nearing its limit. He suggests that diesel prices could climb as high as $9 per gallon before the supply squeeze finally eases. According to Currie, the current turmoil reflects a long-term lack of investment in physical supply rather than a temporary shock, describing the situation as the "old economy taking its revenge" on global markets.

Brent crude recently hovered near $103 a barrel, though volatility remains high amid warnings from the International Energy Agency regarding potential demand destruction. Geopolitical threats further complicate the outlook, specifically reports of Houthi strikes on Saudi infrastructure. RBC Capital Markets analyst Helima Croft noted that a full escalation in the Saudi-Houthi conflict could serve as a catalyst for even higher oil prices. GasBuddy's Patrick De Haan added that the record-breaking diesel costs will inevitably inflate the price of nearly every cargo and delivery across the United States, threatening a significantly more expensive holiday season for consumers.